(corporate arkib : 18/10/2002 from www.utusanonline.com.my)
BANGI Oct 17 - Prima Agri Products Sdn Bhd, a halal food producer which has whet up the appetites of European consumers, has got its founder working on a potential RM240 million deal with small and medium food processors.
At its helm is Datuk Jamaluddin Abdul Kadir, a low-profile ex-banker who opted to enter the business world and do "something else in life" after almost reaching the pinnale of his banking career 16 years ago. After a stint in in the import-export division of the bank he had worked, he decided to import and distribute halal meat, particularly beef. The rest is history.
Today, his company, which has chalked up an annual turnover of RM30 million, is faced with mounting export orders. And its turnover could easily touch RM45 million in 2003 barring a global economic meltdown, he said in a recent interview with Bernama.
After getting approval to export processed poultry to European Union countries earlier this year, Prima sent an initial three containers of 14 selected finished products to its associated company in Amsterdam.
Prima's products were quickly snapped up and from next month onwards, the company expects to export at least three containers of food products each month valued at about RM1 million to Amsterdam, its gateway into Europe.
Prima also exports to Singapore, Indonesia and Saudi Arabia and is eyeing markets like China, the US, other West Asian countries, Australia, New Zealand and India.
Jamaluddin said Prima's existing plant in Bangi was operating at eight tonnes a day and can increase its capacity to 25 tonnes. With structural changes and additional investment of about RM5 million, the capacity can be increased further to 40 tonnes.
"But if the current trend in exports continues and there is an uptake in domestic demand, we will be unable to cope in one or two years' time.
"In fact, a Russian company wants 20 containers of food products per month, but we are in no position to supply because of our limited capacity. Looking on the bright side, we felt a viable, long term alternative would be to set up a food park," he added.
Prima has acquired a 40-hectare (100-acre) piece of land in Gambang near Kuantan to be developed as Prima Halal Food Park.
The food park has been endorsed by the Ministry of Agriculture. The ministry wants to turn Malaysia into a halal food hub and plans to set up similar halal food parks in seven other locations across the country.
Jamaluddin, who is also group chief executive officer of Prima, said the park should be operational within the next three years.
Prima has also been discussing with potential entrepreneurs to set up factories related to Prima's halal products in the food park.
"The response so far has been encouraging and Prima is targeting 80 small and medium scale factories with an investment in plant and machinery and start up cost of up to RM3 million each."
Prima will set up the basic infrastructure, administrative centre, cold storage facilities and laboratory.
The company has developed more than 300 food products from beef, mutton, chicken and turkey and is planning to farm out about 80 products, mainly delicatessens, to these processors.
"Conservatively speaking, if each of these SMIs produce three tonnes of processed meat products per day, it is already 240 tonnes and 10 times our existing capacity," Jamaluddin said.
The food park can also accommodate foreign companies aiming to set up similar operations and use Malaysia as a springboard for their halal products.
Jamaluddin said while exports could reach about 40 percent of total production in future, the domestic market would also be a catchment area for SMIs at the food park.
Prima has worked out plans to increase retail demand through franchising and set up Baguz Foods Sdn Bhd a few years ago to distribute Baguz frozen products manufactured by Prima to small retailers.
But the lack of product awareness forced Prima to introduce the Baguz franchise system. There are currently six Baguz outlets and Prima plans to have at least 42 centres serving stockists and distributors nationwide within the next few years.
At the same time, Prima plans to franchise 3,000 hot dog stands, featuring "Baguz bites" across the country. Each of the Baguz Foods hot dog stand, complete with the necessary equipment, will cost about RM6,000 and the franchisee can immediately start business.
Prima, with a paid-up capital of RM8.5 million and total assets of about RM30 million, produces halal food products either in natural, refrigerated or cooked and chilled form. It has developed gourmet foods (cold cuts and delicatessen) by devising recipes to meet the needs of upmarket customers like Malaysia Airlines and about 30 other international airlines plying the Kuala Lumpur route.
Over the years, Prima has established itself as the key supplier to major fast food chains like Pizza Hut, Delifrance, Nando's Chickenland, A & W Malaysia and Singapore. Its products are also used by major hotels such as Mandarin Oriental, Nikko and JW Marriot and restaurants like Planet Hollywood, Hard Rock Cafe and Skylark.
Prima, with ISO 9002 certification and FAO/WHO's Hazard Analysis Critical Control Point system certificate, won six gold and silver medals at the 6th International Delicatessen Competition in Mannheim, Germany seven years ago.
If all goes well as planned, Prima could be seeking a listing on the Kuala Lumpur Stock Exchange in two years' time.
Jamaluddin said listing was not a priority but "God willing, if we manage to have the track record, it would be time to reward our staff and employees and achieve a degree of respectability for Prima as the producer of prime halal food products."
